Discussion of the changes proposed by the International Accounting Standards Board and how these changes will affect U.S. generally accepted accounting practicesThe changes proposed by the International Accounting Standards Board (IASB) will affect U.S. Generally Accepted Accounting Principles (GAAP). These changes could have the most significant effects in the areas of revenue recognition, leasing and financial instruments (). The changes proposed by the IASB require the use of a standard for revenue recognition. This standard would apply to all industries and all transactions. So, with that standard, there will be no transaction- and industry-specific revenue. Specific revenue recognition will be replaced with a principles-based approach to determining revenue recognition. This new standard from the IASB could affect each entity's day-to-day accounting as well as how activities are conducted in contracts with clients and/or customers. The standard would make it abundantly clear when revenue is recognized and why (Journal of Accountancy July 24, 2010). The primary purpose of the proposed principle is for a company to recognize revenue when it transfers goods or services to a customer in the amount of consideration that the company expects to receive from the customer or customer (Journal of Accountancy July 24, 2010). specific areas that will receive the most significant changes. For example, revenue would only be recognized from the transfer of goods or services to a customer. This change would affect some long-term contracts. Revenue recognition based on percentage of completion might be allowed, but only when the client owns the work in progress... middle of paper... would the cost be reflected on the company's balance sheet. The balance sheet will reflect the fair value by accounting for the amount while the amortized cost information will be shown in the income statement. The difference between fair value and amortized cost data will be identified in other comprehensive income (Snapshot: Financial Instruments). The changes proposed by the International Accounting Standards Board (IASB) will have a significant impact on generally accepted accounting practices in the United States. States. The most profound effects will be felt in the areas of revenue recognition, leasing and financial instruments. These changes are designed to make accounting procedures more consistent around the world so that investors and other stakeholders have a truer understanding of the financial health and stability of companies in which they have any type of investment..